The hospitality sector continued to witness strong YOY growth in Q3, 2022, with revenue generated per annum (RevPAR) growth of 89.6%, shows a recent report. This is primarily driven by corporate travel.
In Q3 2021, there was a significant negative impact on the performance of the sector due to the second wave of the pandemic. However, as compared to Q2 2022, the sector witnessed a marginal dip of 3.8% in RevPAR in Q3 2022 owing to reduced corporate travel amid long weekends and festivals, JLL’s Hotel Momentum India (HMI) Q3, 2022, repo shows.
All six key markets — Bengaluru, Chennai, Delhi, Mumbai, Goa and Hyderabad — witnessed strong growth in RevPAR levels in Q3 2022 as compared to Q3 2021, due to the comparable low base of last year amid travel restrictions post the second wave of the pandemic.
Bengaluru emerged as the growth leader in Q3 2022 registering growth of 241.4% over Q3 2021, followed by Hyderabad and Chennai with YoY growth of 140.9% and 123.6%, respectively. On the other hand, Mumbai emerged as the RevPAR leader in absolute terms in Q32022 as compared to Q32021 with an 80% increase in Average Daily Occupancy (ADR) levels.
Q3 2022 saw 54 hotels comprising 4,282 keys signing in. The hotel signings witnessed a significant increase of 63.2% as compared to signings in Q3 2021. International operators dominated signings over Domestic operators with a 53:47 ratio in terms of inventory volume
In Q3 2022, the hotel room demand across business cities remained strong primarily driven by meetings, incentives, conferences and exhibitions (MICE) and other business-related travel. Despite long weekends, most business cities performed well with occupancy levels circa 70% and also witnessed strong growth in ADR levels.
“Demand growth continues to remain strong in Q3 2022. Hotels across major business and leisure destinations are performing either at par or higher than pre-covid RevPAR levels. This stellar recovery has renewed confidence in the sector resulting in increased development and investment activity. We believe this momentum to continue through the year-end. Furthermore, we expect the hotel investment climate to remain buoyant in 2023 as hotel performances further strengthen” said Jaideep Dang, Managing Director, Hotels and Hospitality Group, India, JLL.
Meanwhile, Q4 2022 is expected to remain busy because of weddings, domestic leisure as winter vacation sets in. Meanwhile, business travel will continue to remain strong through the end of the year.
